2017-05-18T11:22:57ZCopyright Royalty Regulation and Competition in the Music Retail Markethttp://hdl.handle.net/11125/21865
Title: Copyright Royalty Regulation and Competition in the Music Retail Market
Authors: Yang, YongHyeon
Abstract: Price control can restore efficiency in some cases, but an uncarefully
designed policy fails to restore efficiency, yields side effects, or even
exacerbates efficiency losses. This paper shows that the copyright
royalty rule, which takes the greater of ad valorem royalties and perunit
royalties, tends to fix the prices of final goods at a specific level.
Such a rule weakens competition as it prevents prices from decreasing
even when market conditions change, having negative effects on social
welfare as well as consumer surplus. Counterfactual analyses using
estimation results in the Korean online music service industry show
that firms could have profitably reduced prices if the ad valorem rule
had been applied instead, although they did not have an incentive to
do so under the original combination rule.2017-02-01T00:00:00ZThe Public-Private Partnerships and the Fiscal Soundness of Local Governments in Koreahttp://hdl.handle.net/11125/21864
Title: The Public-Private Partnerships and the Fiscal Soundness of Local Governments in Korea
Authors: Lee, HoJun
Abstract: This paper studies the risks associated with local finance in Korea by
identifying the financial status of each local government, including
the financial burdens of PPP projects, and examined governmental
future burdens related to PPP projects. We reviewed all fiscal burdens
associated with projects, such as, for BTL (Build-Transfer-Lease)
types of projects, facility lease and operating expenses, and, for
the BTO (Build-Transfer-Operate) types of projects, construction
subsidies that are paid at the construction stage, MRG (Minimum
Revenue Guarantee) payments and the government&rsquo;s share of
payment. Furthermore, we compared the annual expenditures of local
governments on PPP projects against their annual budgets and
checked if the 2% ceiling rule could be applied.2017-02-01T00:00:00ZThe Relationship Between Monetary and Macroprudential Policieshttp://hdl.handle.net/11125/21863
Title: The Relationship Between Monetary and Macroprudential Policies
Authors: Kang, Jong Ku
Abstract: This paper analyzes the interaction between monetary and
macroprudential policies mainly in the context of the non-cooperation
among policy authorities. Each policy authority&rsquo;s optimal response is
to tighten its policy measures when other authorities&rsquo; policy measures
are loosened. This indicates that the two policies are substitutes for
each other. This result still holds when an additional financial stability
mandate is assigned to the central bank. The condition for the
response functions to converge to a Nash equilibrium state is analyzed
along with the speed of convergence, showing that they depend on the
authorities&rsquo; preferences and the number of mandates assigned to
policy authorities. If the financial supervisory authority (FSA) assigns
greater importance to the output gap or a stronger financial stability
mandate is assigned to the central bank (CB), the probability of nonconvergence
increases and the speed of convergence declines even
when the condition of convergence is satisfied. Meanwhile, if the CB
considers output stability as an important task, the probability of
convergence and the speed of converging to a state of equilibrium are
high. Finally, when a single mandate or small number of mandates
is/are assigned to each authority, stability is more quickly restored as
compared to when many mandates are assigned.2017-02-01T00:00:00ZAn Empirical Study on the Effects of Public Procurement on the Productivity and Survivability of SMEshttp://hdl.handle.net/11125/21862
Title: An Empirical Study on the Effects of Public Procurement on the Productivity and Survivability of SMEs
Authors: Chang, Woo Hyun
Abstract: This paper empirically studies the effect of public procurement on small and medium-sized enterprises (SMEs) in the Republic of Korea using firm-level data. Public procurement, the purchase of goods and services from private firms by the public sector, is regarded as an important policy measure for providing support to firms, particularly SMEs. This study uses establishment-level panel data of the mining and manufacturing sectors from the Korean National Bureau of Statistics (Statistics Korea) and procurement history from the Korean Public Procurement Service to empirically estimate the effects of public procurement on firms&rsquo; productivity (total factor productivity) and survivability. Using a propensity score matching estimation method, we find that participating firms showed higher productivity than non-participating ones in the control group only for the year of participation, that is, 2009. After two years, in 2011, they exhibited significantly lower productivity. In contrast, establishments that participated in public procurement for SMEs in 2009 were more likely to survive than those that did not do so in 2011. These results can be interpreted as the negative consequences of government intervention. The market&rsquo;s efficiency enhancement is hindered if underserving companies survive owing to government intervention but fail to improve efficiency.2017-02-01T00:00:00Z